Loans.org Analyzes the Auto Loan Industry's Recent Success

    RANCHO CUCAMONGA, CA, March 28, 2012 /24-7PressRelease/ -- As news of the auto loan industry's success is being illuminated by falling interest rates and lenders' willingness to grant money to subprime borrowers, Loans.org has released an analysis on what has led to this rise.

Lenders' positive state of mind was recently summed up by Melinda Zabritski, the director of automotive lending for Experian.

"Lenders are clearly on much more solid ground than they were two or three years ago," Zabritski said in a press release. "With delinquencies and total dollar volume at risk down, lenders have been able to adopt more aggressive strategies."

If other lending sectors wish to propel themselves to second place in this race to success, they'd be wise to look at those who originate auto loans and replicate what that industry has begun to do: ignore credit scores affected by the housing collapse.

Since the housing collapse of 2007, millions of homeowners have lost their properties due to foreclosure or strategic default, and that number has been projected to reach more than 13 million by 2015.

Source: http://www.justice.gov/crt/opa/pr/speeches/2010/crt-speech-100623.html

Borrowers either could not or would not pay extraordinary sums of money for a volatile asset that proved to do little more than place financial strain on them and their families. But regardless of what the credit score agencies said, losing or walking away from their home didn't inherently make previous mortgage holders bad borrowers.

In fact, many who suffered a severe credit blow turned out to be in better positions to borrow than ever before.

Auto loan lenders were the first to realize that potential, and they're prospering as a result. By straying from traditional lending standards and ignoring the words of three large private businesses--Equifax, Experian and TransUnion--the auto financing industry has found a market in borrowers who were labeled as subprime and undesirable.

To learn more about the auto industry's innovation, you can go to http://loans.org/auto to find a frequently updated library of financing information. Additionally, prospective loan applicants can access a free-to-use quote-comparison generator that is designed to help consumers receive the lowest interest rates possible.

To access the full article on the auto loan industry's success, readers can follow the "Articles" link at the top of any page on the site.

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